Let me break some things down, we have what like over 2 trillion or excess debt that will eventually swamp the budget, let me rephrase… it will strangle the budget (oh, don’t forget the entilments… remember the baby boomers, they finally qualified for the benefits this year)… Yet during this “finanical crises” that started to show its ugly face in Aug of 07… and the dollar has rallied? I JUST DONT GET IT… wait, didn’t this happen before in 9/11? OH yeah, the dollar rallied for 4 months then went down for 7 years…
THIS IS WHAT YOU NEED TO UNDERSTAND ABOUT HOW F’ED WE ARE…
RPT-PREVIEW-US Treasury to expand debt arsenal as deficit rises
Tuesday, November 04, 2008 5:00:06 AM (GMT-08:00)
By David Lawder
WASHINGTON, Nov 4 (Reuters) – Facing the need to borrow up to a staggering $2.1 trillion in the current fiscal year to fund economic rescue programs, the U.S. Treasury is expected to significantly expand its debt securities arsenal.
Analysts anticipate that the Treasury on Wednesday will announce the return of the 3-year note and adopt more frequent offerings of 10-year notes and 30-year bonds. It may also consider more reopenings of shorter maturities.
“They are going to pull out all the stops. There’s a good chance they’ll come back to a quarterly 3-year note, monthly 5-year (note) auctions and increase issuance pretty subtantially across the board,” said Kim Rupert, head of global fixed-income analysis at Action Economics in San Francisco.
The Treasury Department said on Monday it would need to borrow a record $550 billion in the October-December quarter, including a likely $300 billion in financing for Federal Reserve liquidity operations.
The total was $408 billion higher than previous estimates announced in July 2008 due to outlays for economic assistance programs, lower tax receipts and lower issuance of non-marketable debt securities to state and local governments.
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GE is next to go BYE BYE… unless we bail them out like Chrysler in the late 70′s or early 80′s I forget… but wait, aren’t they in trouble again? Why can we let these companies go under… I JUST DONT GET IT!!!
Credit Swaps Top $33 Trillion, Depository Trust Says
By Shannon D. Harrington
Nov. 4 (Bloomberg) — Credit-default swaps totaling $33.6 trillion are outstanding on government debt, corporate bonds and asset-backed securities worldwide, the Depository Trust & Clearing Corp. said in a report that gives the broadest data yet on the unregulated market.
After canceling out overlapping trades, Italy’s government debt tops the list with $22.7 billion in contracts, the report on DTCC’sWeb site today shows. A net amount of $16.6 billion of contracts are outstanding on Spain; $12.4 billion on Deutsche Bank AG, Germany’s largest bank; and $12.1 billion on General Electric Co.’s finance arm, GE Capital Corp., the report shows.
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We have Paulson who’s and ex Goldmansach insider, now NY FED with the Bear Stearn people? Talk about some type of F’en joke … I JUST DON’T GET IT…
NY Fed hires former Bear Stearns chief risk officer
Tue Nov 4, 2008 9:29am EST
NEW YORK, Nov 4 (Reuters) – The Federal Reserve Bank of New York has hired the former chief risk officer of Bear Stearns Cos, Michael Alix, to advise on bank supervision, according to a release in the Fed’s Web site.
Alix will serve as a senior advisor to William Rutledge in the Bank Supervision Group and his appointment is effective Nov. 3, according to the release dated Oct. 31
At Bear Stearns, an investment bank that collapsed in March and has become hallmark of the global credit crisis, Alix served as chief risk officer from 2006 to 2008 and global head of credit risk management from 1996 to 2006.
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